What is a conglomerate company?

A conglomerate is a corporation of several different, sometimes unrelated, businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, conducting business separately and independently.

What does conglomeration mean?

Conglomeration describes the process by which a conglomerate is created, as when a parent company begins to acquire subsidiaries. Sometimes conglomeration can refer to a time period when many conglomerates are formed simultaneously.

How does a company become a conglomerate?

Conglomeration is the term that describes the process by which a conglomerate is created when a parent company begins to acquire subsidiaries. Companies can become conglomerates can be created in a variety of ways, and sometimes in a combination of ways. The most common way is via acquisitions: simply buying other companies.